Cyprus is a Low tax and Secrecy Jurisdiction specifically targeting Russian and Eastern European companies. Cyprus offers a low flat corporate tax rate, 12,5%, strict privacy laws and geographic proximity to Europe and Russia. It’s status as a Secrecy Jurisdiction is under pressure and Cyprus will initiate participation in the Automatic Exchange of Financial Information in Tax Matters program by 2017.
Cyprus’ IP box rules was changed in October 2016, valid since July 2016 – reduced the list of the qualified IP incomes, no patents nor trademarks anymore. 80% of income is exempted after deducting the real expenses, giving an effective tax rate of 2.5% or less.